The Diary of a Long Term Investor. I have had over thirty years experience of investing in Stock Markets around the World. I have successfully navigated my way through the booms of the 1980's and 90's; the Tech Bubble, Black Mondays Galore and The 2008 Crash
Follow me as I add my insight to the day to day methods of an Investor who HAS Survived.

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Saturday, February 8, 2020

First Dividends

It has to be said that dividends are a joy to my heart. I actually wait like a kid at Christmas, looking for those dividends to hit my bank account.

Cash Dividends

They never fail to bring me joy. After over forty years of investing I still get excited. You would think after all this time that I would have become blase about the prospect of yet another dividend check. But no. Not at all.

Most dividends these days just get re-invested into the paying stock. But yesterday I received my first ever dividend in my new M1 Dividend paying account.

It was a dividend from LQD a monthly paying corporate bond ETF. I also hold this stock in my Roth IRA, where I have a quite large holding. The stock pays over 20 cents per share every month, and I added a fraction of a share to my new M1 Finance account opened three weeks ago to provide some monthly cash income.

Well yes, for me it is a big deal. It is the first dividend in a new account and as such deserves recognition.

I am now seeing a spark of cash inflow. For the last three weeks cash was going from my bank to fund this new account. I knew that would happen. Now the cash generating portion of the account is primed. Cash has begun to come in from a new source.

Of course I will continue to fund the account from my bank for a while.

That is all planned.

But as the first week of February, 2020, comes to an end. There are several more stocks lining up to pay a dividend this month and several more paying out dividends throughout March.

Then the difference with M1 Finance is that the dividends go into my cash pot to be re-invested in any stock in my portfolio.

I have a portfolio of one hundred stocks, most pay a dividend, just two stocks do not. Amazon and Alphabet.

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